Directorate General of Foreign Trade (DGFT) has banned import of jute and woven jute products from Bangladesh via all land ports, permitting entry only through Nhava Sheva port in Maharashtra. This decision aims to protect India’s domestic jute industry from cheap, subsidised imports.
Key Highlights
- Effective Ban: No jute products can be imported from Bangladesh via any land customs station on the India-Bangladesh border.
- Permitted Route: Imports now only allowed through Nhava Sheva seaport in Maharashtra.
- Scope of Restriction: Includes woven jute fabrics, jute yarn, and jute bags.
- No Re-routing: Imports of Bangladeshi jute through Nepal or Bhutan will not be permitted (even if re-exported).
- Earlier Actions (May 2025): Restrictions were imposed on readymade garments, processed foods, and plastics, limiting entry only through Nhava Sheva and Kolkata ports.
Why Was Ban Imposed?
Protecting Indian Jute Industry:
- India’s domestic jute sector has suffered from cheap, dumped jute imports from Bangladesh, which enjoy duty-free access under SAFTA.
- Despite Anti-Dumping Duty (ADD) being in place, Bangladeshi exporters circumvented restrictions via:
- Technical exemptions
- Misdeclaration of origin
- Use of exempted firms
Economic Impact on India:
- Imports from Bangladesh rose to USD 144 million in FY 2023-24, compared to USD 117 million in FY 2021-22.
- Domestic jute prices fell below the MSP of ₹5,335/quintal, impacting farmers’ income.
- Mills faced under-utilisation of capacity, threatening long-term viability.
- Trade diversion expected to boost Indian production by ₹1,000–2,000 crore annually.
Strategic and Diplomatic Context
- Political Fallout: Trade restrictions follow strained ties post ouster of Sheikh Hasina in Bangladesh and formation of interim government under Muhammad Yunus.
- Human Rights Concerns: Rising violence against minorities in Bangladesh has further worsened diplomatic relations.
- Reciprocal Trade Policy: India’s move is seen as a response to Bangladesh’s restrictions on Indian exports such as yarn and rice.
About Jute
| Aspect | Details |
| Significance | 2nd most important fibre crop in India after cotton |
| Uses | Gunny bags, ropes, carpets, rugs, tarpaulins |
| Growth Conditions | Hot and humid (24°C–35°C), 120–150 cm rainfall, high humidity |
| Soil | Alluvial soils (sandy/clayey); needs replenishment due to soil exhaustion |
| Sowing & Harvesting | Sown: Feb; Harvested: Oct; Maturity: 8–10 months |
Jute Production in India
- Share in World Production: India (~56%), Bangladesh (~25%)
- Major States:
- West Bengal (largest producer)
- Bihar
- Assam
- Odisha
- Andhra Pradesh
- Other states: Tripura, Meghalaya
- Employment: Over 4 lakh workers in organised mills and jute units